US pharmaceutical firms Merck and Eli Lilly both reported better than expected earnings yesterday, driven by strong revenue growth from their respective Covid-19 pill and antibody therapies.
Merck said sales of its covid pill molnupiravir achieved sales of $952 million in the fourth quarter and was expected to generate sales of between $5 billion and $6 billion in 2022. Merck shares profits from the antiviral pill with Ridgeback Therapeutics.
The company’s estimates are based on contracts already signed for around 10 million treatment courses, while it expects to manufacture enough pills for 30 million courses over the year.
Merck said it expected to generate total revenues of between $56.1 billion and $57.6 billion in 2022, an increase of 18% on last year. The company reported fourth quarter revenues up 23.5% year-on-year, slightly above consensus forecasts, although the shares closed down 3.7% at $79 due to the broad market sell-off.
Meanwhile, Eli Lilly reported better than expected adjusted earnings per share in the fourth quarter driven by growth in its top selling diabetes drug Trulicity and its covid-19 antibody therapies.
Revenues from antibody therapies grew 22% to $1.06 billion while Trulicity sales leapt by 25% to $1.88 billion, driving total sales 8% higher to $8 billion, besting estimates of $7.73 billion.
Full year revenues were 15% ahead at $28.3 billion and adjusted earnings per share were 20% higher at $8.16.
Last month the US drug regulator revised the emergency use authorisation for Eli Lilly’s covid-19 antibody therapies bamlanivimab and etesevimab because they were found to be less effective against Omicron. Eli Lilly shares eased 2.4% to $245, also reflecting the general market weakness.
